[Federal Register Volume 63, Number 122 (Thursday, June 25, 1998)]
[Proposed Rules]
[Pages 34615-34616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16853]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-116608-97]
RIN 1545-AV61


EIC Eligibility Requirements

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations and notice of public hearing.

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations pertaining 
to the eligibility requirements for certain taxpayers denied the earned 
income credit (EIC) as a result of the deficiency procedures. The text 
of those temporary regulations also serves as the text of these 
proposed regulations. This document also provides notice of a public 
hearing on these proposed regulations.

DATES: Written comments must be received by September 23, 1998. 
Requests to speak (with outlines of oral comments) at a public hearing 
scheduled for Wednesday, October 21, 1998, must be received by 
September 30, 1998.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-116608-97), room 
5228, Internal Revenue Service, POB 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered between the 
hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-116608-97), Courier's 
Desk, Internal Revenue Service, 1111 Constitution Avenue, NW., 
Washington, DC. Alternatively, taxpayers may submit comments 
electronically via the Internet by selecting the ``Tax Regs'' option on 
the IRS Home Page, or by submitting comments directly to the IRS 
Internet site at <a href="http://www.irs.ustreas.gov/prod/tax__regs/
comments.html">http://www.irs.ustreas.gov/prod/tax__regs/
comments.html</a>. The public hearing will be held in room 2615, Internal 
Revenue Building, 1111 Constitution Avenue, NW., Washington, DC 20224.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Karin 
Loverud, 202-622-6060; concerning submissions or the hearing, LaNita 
VanDyke, 202-622-7190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collection of information contained in this notice of proposed 
rulemaking has been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)). Comments on the collection of information should be 
sent to the Office of Management and Budget, Attn: Desk Officer for the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, DC 20503, with copies to the Internal Revenue 
Service, Attn: IRS Reports Clearance Officer, T:FP, Washington, DC 
20224. Comments on the collection of information should be received by 
August 24, 1998. Comments are specifically requested concerning:
    Whether the proposed collection of information is necessary for the 
proper performance of the functions of the Internal Revenue Service, 
including whether the information will have practical utility;
    The accuracy of the estimated burden associated with the proposed 
collection of information (see below);
    How the quality, utility, and clarity of the information to be 
collected may be enhanced;
    How the burden of complying with the proposed collection of 
information may be minimized, including through the application of 
automated collection techniques or other forms of information 
technology; and
    Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.
    The collection of information in this proposed regulation is in 
Sec. 1.32-3. This information is required to conform with the statute 
and to permit the taxpayer to claim the EIC. This information will be 
used by the IRS to determine whether the taxpayer is entitled to claim 
the EIC. The collection of information is mandatory. The likely 
respondents are individuals.
    The burden is reflected in the burden of Form 8862.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control number assigned by the Office of Management and Budget.
    Books or records relating to a collection of information must be 
retained as long as their contents may become material in the 
administration of any internal revenue law. Generally, tax returns and 
tax return information are confidential, as required by 26 U.S.C. 6103.

Background

    The temporary regulations published in the Rules and Regulations 
section of this issue of the Federal Register add Sec. 1.32-3T to the 
Income Tax Regulations.
    The text of those temporary regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations 
explains the temporary regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in EO 12866. Therefore, 
a regulatory assessment is not required. It also has been determined 
that section 553(b) of the Administrative Procedure Act (5 U.S.C. 
chapter 5) does not apply to these regulations.
    It is hereby certified that these regulations will not have a 
significant economic impact on a substantial number of small entities. 
This certification is based upon the fact that the underlying statute 
applies only to individuals. Therefore, a Regulatory Flexibility 
Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is 
not required.

[[Page 34616]]

    Pursuant to section 7805(f) of the Internal Revenue Code, this 
notice of proposed rulemaking will be submitted to the Chief Counsel 
for Advocacy of the Small Business Administration for comment on its 
impact on small business.

Comments and Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments (a signed original 
and eight copies) that are submitted timely (in the manner described in 
the ADDRESSES portion of this preamble) to the IRS. All comments will 
be available for public inspection and copying.
    A public hearing has been scheduled for Wednesday, October 21, 
1998, at 10 a.m., in room 2615, Internal Revenue Building, 1111 
Constitution Avenue, NW., Washington, DC. Because of access 
restrictions, visitors will not be admitted beyond the building lobby 
more than 15 minutes before the hearing starts.
    The rules of Sec. 601.601(a)(3) apply to the hearing.
    Persons that have submitted written comments by September 23, 1998, 
and want to present oral comments at the hearing must submit, not later 
than September 30, 1998, an outline of the topics to be discussed and 
the time to be devoted to each topic. A period of 10 minutes will be 
allotted to each person for making comments.
    An agenda showing the scheduling of the speakers will be prepared 
after the deadline for receiving outlines has passed. Copies of the 
agenda will be available free of charge at the hearing.

Drafting Information

    The principal author of these proposed regulations is Karin 
Loverud, Office of the Associate Chief Counsel (Employee Benefits and 
Exempt Organizations), IRS. However, other personnel from the IRS and 
the Treasury Department participated in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

    Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *

    Par. 2. Section 1.32-3 is added to read as follows:


Sec. 1.32-3  Eligibility requirements.

    [The text of this proposed section is the same as the text of 
Sec. 1.32-3T published elsewhere in this issue of the Federal 
Register].
Michael P. Dolan,
Deputy Commissioner of Internal Revenue.
[FR Doc. 98-16853 Filed 6-24-98; 8:45 am]
BILLING CODE 4830-01-U